On October 11, 2013, the United States District Court for
the Middle District of Pennsylvania denied a gas pipeline company’s Motion to
Enforce Settlement Stipulation and Order because the clear and unambiguous
language of an earlier settlement order limits the gas pipeline company’s use
of land solely for a natural gas pipeline. Tennessee
Gas Pipeline Co., L.L.C. v. Permanent Easement, 2013 WL 5603595 (M.D. Pa.
Oct. 11, 2013).
In 2012, Tennessee Gas commenced the action at hand by
filing a complaint to condemn a parcel of property in Pike County, PA. After
several months of litigation, the parties agreed to a settlement that
stipulated the landowners agreed to deliver to the gas company a deed
conveying a portion of their land, including rights of way, along with a
written confirmation of subdivision approval by a “federal master.” On February
26, 2013, the federal master sent the parties a letter requiring their
signatures on a “Request for Planning Waiver and Non-Building Declaration” that
was attached. The request provided a written description of the disputed parcel
of land and its intended use: “the sole purpose of the ‘out parcel’ is for the
installation of the underground gas pipeline.” Tennessee disputed this language
and asked that the intended use be revised for “facilities” or “construction.”
The federal master rejected these changes. Tennessee then, on April 9,
requested the description be changed to reflect “current” intended use, which
it argued could change subject to approval because it held the parcel in fee
simple. The federal master again rejected the changes, and Tennessee filed the
instant motion.
The court found against Tennessee and denied its motion to
enforce the settlement because the relief requested by the gas company
(requiring signing and approval of the revised request) contradicted the clear
and unambiguous terms of the settlement agreement. The court explained the
settlement provision specifically limited the land use solely to an underground
natural gas pipeline because the settlement provision’s language stated the
land was to be used “strictly and solely for use of a natural gas transmission
pipeline.” Further, the deed restricted use of the land because it incorporated
the provisions of the settlement agreement. Therefore, the gas company’s motion
was denied.
Written by: Garrett Lent, Research Assistant
Agricultural Law Resource and Reference Center
October 2013
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